Lenders who offer alternative to pay day options, such as Moneyboat UK, do have repeat customers. For some people a bank loan is not possible. It may be due to no credit history, too many other financial obligations, poor credit scores, or a host of

Why Non-Traditional Lenders Are Introducing Rewards Programs

Everyone is familiar with rewards programs. Grocery stores, credit card companies, websites, airlines, and even the corner convenience stores all have one type of rewards system or another. The reward can be ticket punches toward a free coffee, airline miles to use for upgrades or free flights, or points that accumulate into ten pounds off the next purchase. It is a simple and cost-effective way for companies to show customer appreciation and encourage repeat business.

New to Fast Loans

The rewards concept is not new, but it is only recently being instituted by quick cash lenders. Why would that be the case? Surely, people do not take out multiple pay day loans due to the exorbitant interest rates and unreasonable terms. The truth is that most people do not go back for a second or third pay day loan.

Lenders who offer alternative to pay day options, such as Moneyboat UK, do have repeat customers. For some people a bank loan is not possible. It may be due to no credit history, too many other financial obligations, poor credit scores, or a host of other reasons. Short term loans have high interest rates, but are paid back over an extended time period which is typically six months.

What Are the Rewards?

Rewards can include lower interest rates on future loans, terms that extend past six months, and an increase in the maximum amount of money loaned at one time. In order to join a rewards program, which is free, the customer has to successfully complete the terms of one loan. That entails making payments on time and in full until the loan is paid back.

How Rewards Work

Most rewards are based on a tiered system and customers have the opportunity to advance through each tier. Advancement is automatic once two loans have been successfully completed at each tier. The interest rate is lower at each level. Terms are longer, and customers are eligible to borrow higher amounts of money.

Exercise Caution

Rewards are always great. There is an inherent danger to them as well. The gratification of rewards can tempt people into altering their behavior. In the case of fast cash customers may be tempted to take out a loan for reasons other than an emergency. Keep in mind how high the interest rates are when you start thinking of getting a loan to pay for a vacation. It is much cheaper to save for that vacation than to pay those interest rates